Wise Real Estate Investors Always Know Their End Game

I was speaking with a real estate investor this morning and he was completely stumped when I asked him what his end-game was. A wise real estate investor always has an end-game in mind. You know, an exit strategy. You should always know how you are doing to get out before you get in.

Granted, the market may move against you and you may have to alter your end-game, but you should always start off with an exit strategy in mind. You can refine it as you go, especially as your needs change.

It might be to continually diversify your risk by trading up (1031 Exchanging) into more properties (quantity) with an emphasis on capital appreciation while in your younger (working) years and then repositioning your real estate portfolio so that it focuses more on income (cash flow) for your retirement years. This may include a consolidation approach so that you are trading into out of the many properties you have build up into fewer, more manageable properties.

In any event, give it a lot of thought, and know your end game.